Shall the US Taxpayers Help Fund the Greek Bailout? (illegal, insurance, dollars)
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This is my first start of a thread here in Great Debates; I hope I'm doing this the correct way.
Here is the question for this thread:
Shall the US Taxpayers Help Fund the Greek Bailout to the tune of $300 Billion?
BACKGROUND
The sovereign Greek government for years has been taking in far less revenue than it spends, and far far less than it has promised to its citizens in the form of future benefits.
Much has been written about standards of social welfare that, in the USA, seem silly. Popular examples used to illustrate this, sometimes taken out of context, include the notion that a hairdresser is guaranteed a state pension and can retire at age 52. Arcane rules in Greece have allowed some to retire with full state-paid pensions at age 45. Daughters of deceased veterans are paid their father's fulll state pension until they marry; few actually marry (surprise, surprise).
Much has also been written about rampant tax avoidance (legal) and tax evasion (illegal) inside Greece. Many Greek citizens don't trust the tax authorities, and go to extreme lengths to "cheat" their government from tax revenue under the assumption that "everyone" does it.
German citizens have become very resentful that their taxes are going to pay for the generous pensions in Greece that German citizens themselves do not enjoy. Ditto for France.
Until now, the "bailouts" have been funded by Eurozone participants themselves. But they have balked at continued funding of Greece, and there is significant doubt that they could also fund the bailout of other weak states such as Italy, Spain, Ireland and Portugal.
The most recent request is for the EFSF -- the European Financial Stability Facility (a bail-out fund intended to stabilize the Greek government and banks who have loaned money to the Greek government) -- to be funded in part by the International Monetary Fund (IMF).
That is, getting the world at large (IMF) to fund the bailout of Greece and the Eurozone.
The IMF has agreed in principle to provide funding to the EFSF in the amount of $1.2 Trillion (or perhaps $1.4 Trillion, depending on the source of information), although the IMF has not addressed just where this money would come from - yet.
The IMF is in part funded by the US Taxpayers. If the IMF goes through with its funding of the EFSF bail-out, the US Taxpayers could be stuck with a bill of as much as $300 Billion (or $400 Billion, depending on the source of the information)
So... restating the question for this thread:
Shall the US Taxpayers Help Fund the Greek Bailout to the tune of $300 Billion?
Taxpayers? How? A special "print money for Greece" tax will be passed? Gimme a break, USA emits global currency at will, taxpayers are not involved into money creation. American taxpayers cannot pay even for their federal government, not speaking of Greek one. Take that global currency emission powers away, what will be left?
The title alone got me annoyed. Are you kidding me! After reading the first three lines, it got my blood boiling. The US has so much debt to begin with so why should we hand out $300 billiion dollars......so a 52 yr old hair dresser or some 45 yr old can retire with a full pension. That is absurd.
Ever hear the old saying "I bust my ass off so you can stay on welfare", well, the same goes for these European countries that don't have their act together if the US hands out $300 billion, Americans are busting their ass off so Greek hairdressers can have a full pension at age 52. Wow, let's all move to Greece.
Greece is part of the European Union. Why would the USA need to assist in the bailout if the USA is NOT part of the EU? If part of our IMF taxes are used for the bailout, then I guess that would be another good reason for withdrawing from the IMF.
It depends. If spending $1 today means adding sufficient stability to the world markets and our stock market such that I'll make $2 tomorrow, then yes. It's like uninsured motorist insurance. You pay it if the knucklehead that hits you doesn't have it. It may not be right but it is worth it.
No doubt the Greeks have been getting a free ride, but sooner or later you've got to pay your bills. Unfortunately for us the new global economic paradigm of international trade puts every Western nation at risk when economic collapse threatens a stalled economy of another.
The UK is not in the eurozone but has had to contribute toward the bailout of Ireland, Portugal & Greece.
There is no way that the US would be asked to contribute $300 billion, I'd like to know where the OP gets that figure from.
America will probably make a contribution, but that would probably come via the IMF.
The title alone got me annoyed. Are you kidding me! After reading the first three lines, it got my blood boiling. The US has so much debt to begin with so why should we hand out $300 billiion dollars......so a 52 yr old hair dresser or some 45 yr old can retire with a full pension. That is absurd.
Ever hear the old saying "I bust my ass off so you can stay on welfare", well, the same goes for these European countries that don't have their act together if the US hands out $300 billion, Americans are busting their ass off so Greek hairdressers can have a full pension at age 52. Wow, let's all move to Greece.
Hi Tappan Zee,
I got bad news for you. You already paid in inflation because they printed the money on their key board already and bought the Greek debt. That's why goods and service are going up in price. Any bail out means a chance to do it again.
Is this a trick question or a joke? With all our problems and huge debt we are asked to bail out a country that only until very recently refused to curb the excesses of Socialism? Bunk. Let them solve their own problems. While we are on the subject, let Italy fall flat on its face too, and while we are at it, Spain and Portugal. The Euro welfare nations require a harsh lesson regarding the disfunction of Socialism. We can only hope that our own leaders view what is happening in Europe and take heed, but they do not appear to be paying attention.
let Italy fall flat on its face too, and while we are at it, Spain and Portugal. The Euro welfare nations require a harsh lesson regarding the disfunction of Socialism. We can only hope that our own leaders view what is happening in Europe and take heed, but they do not appear to be paying attention.
Letting them fail may have big time negative implications for the US including our personal investments, our jobs, our real estate, and our retirement and estate planning.
Are we SURE we are OK with letting them fail?
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